Finance
NPS Calculator India
Project an NPS corpus at 60 and see the split between the tax-free lump sum and the compulsory annuity.
Interactive tool
NPS Calculator India
Corpus at 60
₹1,13,96,627
Tax-free lump sum
₹68,37,976
Monthly pension
₹22,793
Choice IQ readout
At least 40% of the corpus must buy an annuity at 60, and that pension is taxed as income. The 60% lump sum is tax free. That split, not the headline corpus, is what decides how useful NPS is for you.
- Compare against an equity mutual fund plus a term plan. NPS wins on the extra Rs 50,000 deduction under 80CCD(1B), and loses on flexibility.
- Check your fund manager and asset allocation. The default lifecycle fund moves you to debt quite aggressively with age.
- Annuity rates are quoted when you actually buy. The 6% used here is indicative, not a promise.
Tool guide
How to use this nps calculator india
The headline NPS corpus is misleading on its own, because you cannot take all of it. At 60 at least 40% must buy an annuity, and that pension is taxed as income, while the remaining 60% comes out tax free. This calculator shows the split and an indicative monthly pension, which is the part that decides whether NPS suits you.
Formula
Corpus = monthly contribution compounded at your expected return until 60. Annuity portion = corpus x annuity share. Monthly pension = annuity portion x 6% / 12.
Decision guide
When to use this nps calculator india
Best use case
Use this page when you need a quick first estimate before comparing products, lenders, subscriptions, or buying options. It is built for practical planning, not final professional advice.
Inputs needed
Keep these numbers ready: Monthly contribution, Your age, Expected return, Annuity share. If you are unsure, run one conservative estimate and one optimistic estimate.
Shareable result
After calculating, use the result link to save or share the same inputs. The URL parameters keep the calculation easy to revisit.
Common examples
Readers usually use this tool for comparing nps against mutual funds, planning the extra 80ccd(1b) deduction, estimating retirement income. The best way to read the output is to compare scenarios instead of treating one result as a final answer.
How it works
The headline NPS corpus is misleading on its own, because you cannot take all of it. At 60 at least 40% must buy an annuity, and that pension is taxed as income, while the remaining 60% comes out tax free. This calculator shows the split and an indicative monthly pension, which is the part that decides whether NPS suits you.
Examples
- Comparing NPS against mutual funds
- Planning the extra 80CCD(1B) deduction
- Estimating retirement income
FAQ
Is NPS better than a mutual fund?
NPS wins on the extra Rs 50,000 deduction and lower fund management charges. Mutual funds win on flexibility - no lock-in to 60, no compulsory annuity, and no restriction on how you draw the money. Many people use both.
Can I withdraw from NPS before 60?
Partial withdrawal up to 25% of your own contributions is allowed after three years for specified reasons such as education, marriage, illness or buying a home. Full exit before 60 requires 80% to buy an annuity, which makes it unattractive.
What annuity rate should I assume?
Rates are quoted when you actually buy, and have generally been around 6% in India. This calculator uses 6% as an indication, not a promise - the actual figure will depend on the annuity provider and option you choose at the time.
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